Aecom Technology Corporation (ACM)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.07 | 5.08 | 4.65 | 4.39 | 4.46 | 4.50 | 4.59 | 4.42 | 4.56 | 4.33 | 4.42 | 4.25 | 4.30 | 3.95 | 3.48 | 3.71 | 4.15 | 3.94 | 3.44 | 3.51 |
The solvency ratios of AECOM, as indicated in the table, provide insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: AECOM's debt-to-assets ratio has been relatively stable around 0.19 to 0.20 over the quarters, indicating that approximately 19% to 20% of the company's assets are financed by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio has also remained consistent, ranging from 0.46 to 0.50. This ratio suggests that AECOM relies on debt to finance around 46% to 50% of its capital structure.
3. Debt-to-equity ratio: AECOM's debt-to-equity ratio fluctuates between 0.85 to 1.00, with the highest level seen in Q4 2023. This indicates that the company has been relying on debt to a significant extent, with debt representing 85% to 100% of its equity.
4. Financial leverage ratio: The financial leverage ratio, which indicates the proportion of debt in the company's capital structure relative to equity, shows fluctuations between 4.39 to 5.08. This ratio signifies that AECOM has been maintaining a level of financial leverage ranging from 4.39 to 5.08 times.
Overall, based on the solvency ratios, AECOM has maintained a stable level of debt utilization to finance its operations, with some fluctuations in the proportion of debt relative to assets, capital, and equity over the quarters. The company's financial leverage has varied, indicating changes in the mix of debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | 55.68 | — | — | — | 19.31 | 60.45 | 58.11 | 51.61 | 40.67 | 51.38 | 53.11 | 51.55 | 51.48 | 48.35 | 45.25 | 37.37 | 43.27 | 46.28 |
AECOM's interest coverage ratio has varied over the past eight quarters, ranging from a low of 3.18 in Q2 2022 to a high of 7.16 in Q3 2022. The interest coverage ratio measures the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).
The trend in AECOM's interest coverage ratio shows some fluctuations. While the ratio was relatively low in Q2 and Q3 2022, indicating a lower ability to cover interest expenses with operating income, it improved significantly in the following quarters, reaching its peak in Q3 2022.
Overall, AECOM's interest coverage ratios in the most recent quarters, Q4 2023 and Q1 2024, remain above 4, indicating a good ability to service its interest payments. Investors and creditors typically look for a higher interest coverage ratio as it suggests a lower risk of default on debt obligations. Monitoring this ratio over time can help assess the company's financial stability and ability to manage its debt effectively.